Be In The Know: Top 5 Tips When You Buy Life Insurance

Life insurance is a must for the future, but it isn’t something that you should just purchase at random – you need to be prepared. When you buy life insurance, you are doing so to protect yourself and your loved ones in the future, so take the time to get the policy that best suits you.  

Want some advice? Here are our top 5 tips to consider when you buy life insurance: 

1.      Know what you need. This is the most important step, and these needs have to be clear before you even start looking to buy life insurance. Think about what you want the insurance for, who is or may become dependent on you in the future, long-term financial and life goals, and retirement income. A good insurance advisor will ask you about these things so it is important to reflect on them carefully. 

2.      Do your research. Before you buy life insurance it is smart to understand the differences between each policy and what the pros and cons are for each type of insurance. If you don’t understand the differences, ask. Whole life insurance is insurance for your entire life whereas term life covers you for a specific period of time. Other insurance plans may be more suited for investments – you need to be clear on what you are buying and why. 

3.      Don’t buy direct. When setting out to buy life insurance, never go directly to the insurance company – they can only offer you their products, their services and their prices (there is no room for comparison here). Also, because they are more interested in their own needs than yours, they will try to sell you all the unnecessary bells and whistles – don’t buy into this. 

4.      Work with a broker. Instead of going direct, work with an insurance broker. An insurance broker with access to a number of different companies can comparison-shop for you, offering you the policy that meets your needs at the best rate. They will also be able to offer various products, and you can be sure that you are more than just a number – their success is based on your satisfaction – so they need to be sure that you are happy.

5.      Don’t let price dictate your decision. When you buy life insurance, price should never be the determining factor. There are many cheap policies out there but cost often reflects quality – and so don’t go cheap. That being said, the right insurance advisor will be able to explain the differences in price and how each policy works. 

When you buy life insurance, make sure that you are getting exactly what you need. Let these tips guide your search. 

For more tips to use when you buy life insurance, please contact Independent Financial Concepts Group today at 416-849-1653.

Retirement Income Planning: Ask Your Insurance Advisor

Retirement income planning is very important but can feel overwhelming as there are so many considerations. Will you have enough income, do others depend on you financially, who will you live with and will they be able to provide long term care? These are all questions that will have to be answered when you start your retirement income planning.  

Retirement income planning should not be taken lightly – after all, it will be the income that supports you after you stop working – so you should be sure to consider the various different options that exist to give you the most sustainable source of income. These options may include maximizing on your investments and insurance. One important vehicle for retirement income planning is life insurance.  

Life insurance as part of retirement income planning: With a whole life insurance policy, not only do you have life insurance coverage for your entire life, but you can also use that policy to build wealth and generate capital for the future. Whole life insurance combines an insurance policy with an investment component. When you retire, the cash value of your policy can be taken out and can then be used for whatever you need, whether as a loan or just paying for regular monthly expenses. And you have options for paying back this money – making it all the more convenient.

Universal life insurance is also a smart retirement income planning tool. This type of insurance provides income in the future through tax incentives. As a way to grow your savings, universal life insurance works to invest funds in a managed investment, giving you pay-outs you can use once you retire. Like whole life insurance you can use this money for whatever you want/need.

Why do these work? Any money you save for retirement is important, and with the various options out there it can be tough to decide which option will work the best for you. With life insurance, there are many benefits. The forced saving helps many – and if you contribute additional funds monthly, that’s even better. Even more important is the fact that these retirement income planning methods are tax protected – meaning that if you don’t withdraw funds you are not charged, and chances are good that when you retire you will be in a lower tax bracket and thus charged far less.

Retirement income planning is not something that can be accomplished on the verge of retirement. Speaking with an experienced insurance advisor – one who can explain and offer all of the various products to help you save – is a smart way to get started on the road to riches.

For more information about retirement income planning and using insurance as an investment for the future, please contact Independent Financial Concepts Group by calling 416-849-1653.

School is in Session: Plan for the Future with Life Insurance for Children

With school back in session what better time is there to start thinking about an education fund for your child’s future? Right now you tell them that they can be anything they want to be when they grow up – but what about when high school graduation rolls around and they have their sights set on post-secondary education…

Here are the facts: the average cost of post-secondary education in Canada rises steadily every year. For the 2011/2012 school year the average cost of tuition for an undergraduate student at a Canadian university was $5366, and at a Canadian college $2600. And that’s just the classes. For most undergraduate (university) programs, the yearly cost of books ranges from $800 to $1000, or a little less for college programs. And these costs don’t factor in the cost of living – which rises when your child goes to school out-of-town. Add on at least a few thousand dollars more if they are not living at home during this period.

Every parent wants to be able to provide for their children, including their education, but when it comes to saving many just don’t see a way to do it. Here is where the benefits of life insurance for children come in. By purchasing a life insurance policy for your child when they are still in grade school, you are essentially providing for their future no matter what they want to do. Low monthly premiums make it easy to set that money aside.

Think about it this way: the average post-secondary education today runs about $25000 for a degree. The average policy, with low monthly premiums, can garner a cash value to be used to pay that entire amount. By taking out life insurance for children, you are effectively securing those funds so that your child can avoid student loans and benefit from an education that gives them a fresh financial start once complete.

What if they choose not to pursue a post-secondary education? The money saved through that life insurance policy can be used for many other things: buying their first car, a down payment on a home, traveling the world, etc. That cushion provides the stability when they first start out that lets them breathe that much easier. With life insurance for children, you can save for your child’s future without stress.

For more information about securing education savings through life insurance for children, please contact Independent Financial Concepts Group today at 416-849-1653 or visit us at www.wecoveryou.ca.

Is an Online Life Insurance Quote the Best Way to Go?

In today’s digital age, the conveniences of the internet are well known. Online shopping, online movies, e-books, etc. all make getting what you want that much easier. These days, so many people turn to the internet to compare prices and try and find the best deal. Life insurance tends to be a favourite here – but is an online life insurance quote really going to get you the protection that you want? 

Surfing the web for an online life insurance quote may seem like a smart idea, but is it really the best way to go? 

Getting an online life insurance quote may not give you the same level of personal service and guidance that you would get by speaking with an advisor. Pre-made forms that only ask certain questions without probing you to consider what other products and coverage may be relevant to your future goals. For example, how do you tell an online life insurance form what your financial plans are? You can’t. Can you discuss your future goals when getting an online life insurance quote? No. Can an online insurance quote provide you with the answers to your questions or offer advice? Not likely in any great depth. Life insurance is an important investment, and so making sure that you get what you want and need should mean talking with an insurance advisor that can cater your insurance specifically.

Another problem with an online insurance quote is the fact that you can’t really be sure that those quotes being offered are actually for the exact same product. With insurance, so many factors contribute to the building of an insurance policy that it is very difficult to compare apples to apples on an online stage.

Commission rates vary company to company, and so getting an online life insurance quote does not necessarily mean that you are getting the lowest price. That being said, price should not be the only determining factor in your decision to buy – there are many things that need to be considered, and so talking with an insurance advisor will help you determine what those are.

Instead of leaving your life insurance in the hands of a machine, think about why you are getting that online life insurance quote to begin with. If you are looking to purchase life insurance, chances are you are looking for financial protection for yourself or your loved ones for the future.

Looking for online life insurance quotes is not the same as looking for an online car insurance quote – there are many more things to be considered. The best way to ensure that that protection is as it should be is to seek out and speak to an insurance advisor. They will be able to work with you to find the best product to meet your individual expectations and the price for the insurance will be the same. 

For more information about life insurance and why an online life insurance quote isn’t always the smartest option, please contact Independent Financial Concepts Group by calling 416-849-1653 or visit www.wecoveryou.ca.

Distribute Assets Fairly with a Toronto Life Insurance Policy

It is comforting to know that if your family lost you that your loved ones would be protected. A Toronto life insurance policy can offer that comfort and also ensure that your family will not be fighting over the division of your assets, because you will have pre-designated your beneficiaries deciding “who gets what”.

As terrible as it is, distribution of assets after death is a problem that many people face, and often results in legal battles and years of resentment. A Toronto life insurance policy represents an important opportunity to fairly distribute your assets – thereby limiting the potential of family disputes arising once they have lost you.

Think about it this way. If you own your home, it often does not make much sense to leave it to several beneficiaries. If this happens, conflicts over keeping or selling the home, and any issues that surround these decisions can quickly ensue. Instead, leaving it to a single beneficiary often is a better choice. Doing this though can also lead to disputes since other family members may see it as an unfair distribution of your assets.

A good way to solve this problem is by purchasing a Toronto life insurance policy to be used as another asset to be distributed. By purchasing a Toronto life insurance policy that can be left to a loved one once you pass away, you can make sure that one family member does not receive a far greater dividend than any other. Leaving life insurance to one member and the large asset to another ensures that all members feel that you have divided your possessions equally – getting rid of the chance for resentment and bitter feelings.

If you have children or grandchildren that you know you would like to leave something to upon the event of your death, a Toronto life insurance policy is a great way to do this. By listing more than one beneficiary, or by dividing up the life insurance policy in your will, you can make sure that those family members you want to leave something to will get it.

Living with the secure knowledge that your assets will be divided fairly in the event of your death is important. Purchasing a Toronto life insurance policy now that will achieve this is a smart way to distribute those assets and save the added heartache once you are gone.

Here are some things to remember when you purchase your Toronto life insurance policy. If you are leaving an asset (house, business, etc.) to one family member, try to make sure that the value of the policy is relatively equal to that of the asset. Also, check it regularly, and if market values change, you might want to adjust the policy to reflect those market changes – that way both assets remain of equal value.

Don’t let an unequal distribution of your assets leave your family dealing with even more loss once you are gone. Take advantage of a Toronto life insurance policy and see your assets divided fairly.

For more information about a Toronto life insurance policy, please contact Gary Mandel at Independent Financial Concepts Group at 416-849-1653 or visit www.wecoveryou.ca

Canadian Retirement Planning - Tips to Improve the Way You Invest Money

Are you thinking about investing as part of your Canadian retirement planning strategy, but not really sure where to start? Even though the economy is turning around again after the collapse in 2008, and economists are predicting stabilization within the very near future, investing may still seem a bit scary. But if you are getting your Canadian retirement planning set, investing is definitely something that you need to consider.

What if you have never invested before or if your investing experience is very limited? Don’t worry: we’ve compiled some tips to improve the way that you invest money to help you along the road to effective Canadian retirement planning and smart investing.            

1.       Invest in segregated funds. If you are a little bit nervous about investing and feel as though you don’t want to risk money with no guarantee, segregated funds are usually safe bets. With segregated funds, no matter how much you invest, be it $1000 or $10000, a minimum of 75% of your initial investment is always guaranteed to be protected – no matter what happens in the market.  Takes away some of the worry, doesn’t it? 

2.       Life insurance as an investment. Most people don’t think about insurance as an investment tool – but they should. There are several benefits to using your insurance policy as an investment. For example, whole life insurance as an investment means investing without having to have that investment knowledge – since the funds are managed for you. Life insurance as an investment is often less risky than other forms of investing as there are guaranteed annual returns which increase over time. 

3.       Pay attention. Ok, so you invest a small amount each month, perhaps through insurance or another managed type of investment. You receive a monthly statement, which usually gets opened, the balances checked, and then gets tucked away with all of your other paperwork… Wait a second; this is your money, so why aren’t you paying more attention to it? Instead, this month, check out those changes. Take some interest in how your investments are performing. Being engaged will only make you a smarter investor, and give you a chance to better understand not only the market and improve your investments overall performance. 

4.       Diversify. There is much to be said for the old adage “don’t put all of your eggs in one basket”, so diversifying your investment portfolio is a smart choice. Even if each investment is a small one, you are far more securely protected when you spend widely. For example, consider investing in a tax free savings account, RRSP and life insurance. 

There are several different things that you should think about when investing. Remembering to consider all of your options is a smart way to approach your investments when preparing for the future. 

For more tips about investing or to find out more about how to use life insurance as an investment, please contact Independent Financial Concepts Group by calling 416-849-1653 or visit www.wecoveryou.ca.

Link Between High Stress Jobs and Critical Illness – Why Critical Illness Protection is Vital!

For most of us, getting up and going to work every day is necessary. No matter what job you do, whether it is an interim stepping stone or your dream career, there is always the chance that stress will lead to a critical illness. Whether you work as a lawyer, dealing everyday with fast paced cases, a police officer or firefighter dealing with life or death situations, or a nurse working shift work, the chances of dealing with stress, and a subsequent critical illness, are quite high, especially as we get older. 

There are several different workplace conditions that have been identified as leading to job stress, including the design of tasks, management style, work roles, career concerns, or environmental conditions. High stress jobs don’t necessarily mean high powered jobs – anyone can suffer from the effects of high stress – which all too often lead to critical illnesses, such as heart attack, stroke, or even cancer.

Since most of us can’t just quit our jobs and find something that requires very little interaction with those factors that can lead to stress, critical illness protection is vital. So, what is critical illness protection (or critical illness insurance)? Critical illness protection is a form of insurance that protects you in case you end up suffering from a critical illness. Rather than life insurance that protects you after you pass away, critical illness protection is there to assist you when you are still alive.

Critical illness protection can provide you with a cash benefit to be used to rebuild your life after suffering the illness or injury that takes you away from work.

Since survival rates for those illnesses covered by critical illness protection are quite high, it is essential to make sure that you are covered by a policy in case you suffer from one. For example, various forms of heart disease will affect 1 in 3 women and 1 in 2 men during their lifetime, but the survival rate for a heart attack is over 80% in Canada.  Similarly, 1 in every 20 will suffer a stroke, but the survival rate for strokes is 85%. These stats prove just how important it is to safeguard yourself with critical illness protection, especially if you work in a high stress job.

Here are some other stats that may help convince you of how important critical illness protection is:    

-          48% of house foreclosures are a result of a serious illness.

-          In 2000, over $800 million of individual retirement savings were used to pay for critical illness care.

-          72% of Canadians have noted that governmental aid will not cover all medical costs related to a critical illness.

Whether you are in what may be considered a high stress job or not, a critical illness is always a factor, and so taking advantage of the benefits of a critical illness insurance policy needs to be just as important. If you suffer from a critical illness and are unable to work, or need to take a significant period of time off work, critical illness protection can help you keep up your current lifestyle.

For more information about critical illness protection, please contact Gary Mandel at Independent Financial Concepts Group at 416-849-1653 or visit www.wecoveryou.ca.

Paying for an Education is Easy with Whole Life Insurance for Children

When your children are born, generally life insurance is not the first thing that you think about. The joy of watching your child learn and grow takes precedence, and thinking positively about the future is usually the only way to go. However, life insurance for children is incredibly important, and so taking out whole life insurance for children when they are young should be a significant consideration for planning for the future.  

Although most people think about life insurance as a way to pay for the costs associated with the death of a loved one – it is not the only reason to acknowledge the benefits of a life insurance policy, especially for children. If a parent has to suffer the tragedy of losing a child, the benefits of a policy that can relieve some of the financial stressors are essential. That being said, purchasing life insurance for children does not necessarily have to be so negative.

Firstly, what is whole life insurance for children? Whole life insurance for children is just like whole life insurance for adults; it is a policy that protects you, holds a cash value that can be borrowed against, and generally is garnered by paying fixed monthly payments set at the beginning of the policy that will not change over time.

Whole life insurance for children is an essential savings tool – especially when planning for future education costs. Every parent wants their child to have access to the best education, and therefore the best jobs that help ensure their future. But this education is costly, and so education planning is critical. Knowing that the average cost of one year of post-secondary education is currently around $12 000, thinking about where that money is going to come from is key.

As a savings account, whole life insurance for children provides you with the ability to continually add to these accounts and watch the balance grow. Then, when the child is old enough, planning to go off to college or university, they can access those savings that you have worked so hard to amass for them.  This saves them from having to take out extensive student loans or O.S.A.P loans to pay for their education. By taking out a policy that provides life insurance for children, you are giving them a chance start their future without a heavy debt load.

These life insurance policies also make great gifts. If you are a grandparent and want to give a gift to a child that will actually benefit them, life insurance for children as a vehicle for saving is a great way to do that. Take away those negative connotations attached to life insurance, and giving a life insurance policy that a child can watch grow over time and eventually use to pay for their education, or for any number of other big purchases, will mean a great deal.

To find out more about life insurance for children and how it can help secure your child’s or grandchild’s future, please contact Gary Mandel at Independent Financial Concepts Group at 416-849-1653 or visit www.wecoveryou.ca.

Life Insurance in Canada – Why Going to An Ontario Insurance Broker is a Smart Idea

If you are thinking about purchasing life insurance in Canada to help protect you and your family in the future, it may seem like a cheaper idea to go right to the source, sort of like purchasing direct from the manufacturer. But life insurance is not the same as a television, and purchasing life insurance in Canada directly through the insurance company can be a bad idea. Instead, obtaining life insurance through an Ontario insurance broker is a much better idea.

First of all, going directly to the source and purchasing life insurance in Canada directly from an insurance company means that you are getting the rate from that company and no other companies. The company is interested in getting you as a client, and can tell you all about the benefits of their policies, their rates, etc., without giving you access to any other insurance company rates. Instead, by purchasing life insurance through an Ontario insurance broker, you get to know all of the perks offered by all of the different companies that brokerage works with. A good Ontario life insurance broker will have a portfolio of several different companies, thus allowing you to choose from the different plans and policies to find the life insurance plan that best suits your needs.

Going directly to an insurance company means service with their best interests in mind. As an alternative, going to an Ontario insurance broker to obtain life insurance in Canada means that you are dealing with an insurance broker who is interested in making and keeping you happy. Their goal is not to make the insurance company money by selling you life insurance in Canada, but to make sure that you will continue to get the best services and policies. You are not just a number or dollar sign.

Those Ontario insurance brokers that choose to work with an insurance brokerage have done so because they feel that they can give their clients the best rates and services only by working with an insurance brokerage, not by working directly for an insurance company. They know the benefits that can be garnered for their clients, and if you are looking for the best deal on life insurance in Canada, it pays to seek them out rather than going directly to the insurance company.

For more information about life insurance in Canada, or how an Ontario insurance broker can get you the best rates, please contact Gary Mandel at Independent Financial Concepts Group at 416-849-1653 or visit www.wecoveryou.ca.

What is Mortgage Life Insurance?

When you are purchasing a home, there are many different things that need to be considered – most of which are very important.  Protecting yourself and your family is crucial for the future. One of the things that you absolutely need to think about is mortgage life insurance – but what is mortgage life insurance?

When you purchase a home, often one of the first things that you will have to think about is how to protect your mortgage. There are many different types of mortgage life insurance out there that will protect you or your loved ones in the event that someone passes away.

So, what is mortgage life insurance? Mortgage life insurance is sold by different types of companies. Many times your bank (or the insurance division of your bank) will offer you mortgage life insurance when they offer you mortgage financing or will market these products to you once you are a client.

This is sometimes referred to as mortgage life insurance, mortgage protection insurance or mortgage insurance. It is important to know that there are key differences when it comes to obtaining mortgage insurance through the lender who holds your mortgage vs. seeking out the insurance yourself, through a trusted insurance broker.

Let’s look at some of the key differences:

When will the policy be underwritten? When you obtain mortgage life insurance through a good insurance broker, the policy will be underwritten at the time that you obtain the insurance. This means that you will have to complete an in-depth medical questionnaire. This ensures that if something does happen in the future that the insurance company will have difficulty getting out of paying your claim. When you take out insurance through your mortgage lender, in most cases your policy is not underwritten until something happens. When you obtain the insurance, very little information will be asked of you, but in the future if you end up having to claim, the insurance company will ask questions then and will raise reasons to deny your claim.

Who does the policy protect? When you obtain mortgage life insurance through an insurance broker they represent you, not your mortgage lender. When you arrange your mortgage life insurance through your mortgage lender they will list themselves as the beneficiary on your policy. Your insurance broker will provide you with the option of listing your loved ones, allowing your loved ones to determine how the proceeds of your mortgage life insurance will be distributed.

How much coverage will I have? In many cases, when your mortgage lender arranges your insurance, your policy will state that the balance of your mortgage will be paid off upon death. While your monthly mortgage life insurance premiums will stay the same for the life of the mortgage, over time your mortgage balance will decrease as will the amount that will have to be paid out on a claim in the event that there is a death. For example, say you have a mortgage for $200,000 and your mortgage life insurance payment is $22 per/mo. 5 Years into your mortgage your balance is $170,000, your spouse passes away, the insurance company will pay your bank the $170,000. When you obtain mortgage life insurance through your insurance broker, the face value of the policy will remain the same for the duration of your policy term.  So, if you have a mortgage for $200,000, you arrange mortgage life insurance in the amount of your mortgage and your mortgage life insurance payment is $22 per/mo. 5 years into your mortgage your balance is $170,000, your spouse passes away, the insurance company will pay you the full $200,000.

What happens when you renew? As you know, your mortgage is likely to renew every 1 to 5 years. Every time you refinance your home, if you have obtained mortgage life insurance through your mortgage lender, you will be quoted on a new policy. This could change your rates exponentially because, as we age, insurance becomes more expensive. When your mortgage life insurance term policy is arranged through a mortgage broker it doesn’t matter if you sell, buy another property, or refinance, because your mortgage life insurance is not directly tied to your mortgage.

If you have just purchased a home or are thinking about getting insurance to protect your mortgage, mortgage life insurance arranged through a trusted insurance broker who deals with all of the life insurance companies is the way to go. Don’t get sucked into the convenience of obtaining life insurance through your mortgage lender without first knowing all about it. Instead, consider a mortgage life insurance policy that truly protects you and your family.

For more information about mortgage life insurance, please contact Gary Mandel at Independent Financial Concepts Group at 416-849-1653 or visit www.wecoveryou.ca.

Whole Life Insurance is a Good Investment Product for Savers

With so many different types of insurance out there, it can often be difficult to determine which policy best suits your needs.  Depending on your current financial situation, as well as your future financial goals, different plans meet different needs. If you are starting out with a young family, term life insurance may suit your financial situation and goals.  If you are in a stable financial position and you are interested in combining life insurance and investments, then you need to know that whole life insurance is a good investment product for savers! 

What is whole life insurance? Whole life insurance is an insurance policy that protects you for your entire life. Unlike term life insurance, which covers for a specific range of time, 10 or 20 years for example, a whole life insurance policy covers you for life. This means that you are protected for your entire life, without having to worry about renegotiating after your term life insurance policy has expired. 

Even better, whole life insurance is not just important as a life insurance plan – it is also a great way to invest and save money for your future!  Whole life insurance is a good investment product for savers because it carries a cash value, is a safe investment vehicle, and because it carries important tax benefits! 

Carries a Value and Can Be Borrowed Against: A whole life insurance policy carries a cash value, and you can use this cash to borrow against. The cash value of your insurance policy can be taken out and used as a loan for other expenses. Also convenient is the fact that you can pay it back in a number of different ways, for example, making regular payments or letting the interest accumulate and having the amount owing subtracted from the benefit paid out in the end, whichever option works for you. 

Safe Investment: As an investment, a whole life insurance policy is also an effective vehicle by which to accumulate wealth and generate value for your future financial needs. Whole life insurance policies are designed to be low maintenance. The accumulated cash value is invested in a diversified investment pool which is managed by professionals, meaning little to no involvement is required by you. Safe and secure, whole life insurance policies are designed to meet your investment AND insurance needs. 

Tax Deduction: If you choose not to withdraw the cash that accumulates, the value of the investment will grow tax free. If you wait and only draw the cash once you retire, you will most likely be in a lower tax bracket than before you retired, and thus will have the chance to keep more of your money!  

These three major reasons why whole life insurance is a good investment product for savers should help you to determine, firstly, what it is you want to gain from your insurance policy, and secondly, how your insurance policy can work for you.  

For more information about how whole life term insurance is a good investment product, or to discuss what insurance policy will suit your current needs, please contact Gary Mandel at Independent Financial Concepts Group at 416-849-1653 or visit www.wecoveryou.ca.

Long Term Disability Insurance – Is My Employer’s Coverage Enough?

Most people are aware of the importance of obtaining life insurance to provide for loved ones in the event of a death, but what happens if you become disabled or suffer from an unexpected illness that prevents you from earning an income?  

Long-term disability insurance is an important provision you need to make for your future. It replaces a portion of your income if you become unable to work for a prolonged period of time due to an illness or injury. It is important to consider that long term disability insurance is going to have the greatest impact on your financial situation. If you are off work for 30 or 60 days, chances are you will be able to cope financially. However, if you are unable to work for a longer period of time, the financial impact can be devastating.                      

There are two basic definitions of disability in long term disability insurance contracts: ‘own/regular occupation’ and ‘any occupation.’ The own occupation definition refers to your ability to perform those duties essential to your own/regular occupation.

Under the any occupation definition of disability, you are considered disabled if you are considered medically unable to perform the essential duties of any occupation for which you are reasonably qualified by training, education or experience. Often the ‘own/regular’ contract will cover a term of two to five years, and will convert to an ‘any occupation’ if you are determined to be disabled at the end of this period. It is important to discuss your options with your insurance broker to decide which long term disability insurance plan you feel best suits your needs.

Some employee benefit packages do contain coverage for disability, although this is often not long term disability insurance. These are typically set at a rate that provides a percentage of salary, for example 50% of your base salary until the employee turns 65. But is this enough? It may not be…

There are several benefits to obtaining additional or supplemental long-term disability insurance coverage. Depending on the policy provided by your employer, you may be covered until retirement or until you recover from your disability. However, this coverage usually does not begin from the time you are off – usually it does not start until short term disability payments, such as sick leave, stop. This means that if additional costs are incurred during this period, you are on the hook. Instead, long term disability insurance provides you with the necessary coverage to bridge the gap between the onset of your illness or disability and the beginning of your employer provided disability insurance coverage.

What if you are injured at home, or in a non-work related incident?  Worker's Compensation only covers work related accidents and unemployment insurance only covers 15 weeks. This can be detrimental if your illness or disability lasts longer than the allotted time or occurs off the job. Personal long term disability insurance takes care of these issues and provides coverage regardless of where the disability occurred, and for a much longer period of time.

With long term disability insurance, the monthly income replacement can often be the difference between being able to support and provide for those that matter to you, and not being able to. Don’t just protect your life, make sure you protect your income.

For more information on how to obtain long term disability insurance, please contact Gary Mandel at Independent Financial Concepts Group by calling 416-849-1653 or visit www.wecoveryou.ca.

Life Insurance - Do Young People Really Need It?

When you’re young, often the last thing on your mind is life insurance. Life insurance protects your loved ones when you are gone, and when you’re in your twenties and thirties that can be hard to imagine. So why do young Canadians need life insurance? There are many reasons why it makes good sense for a young Canadian to obtain life insurance.

One of the primary reasons that it is a good idea to seek life insurance when you are young and in good health is that this is when life insurance is the most affordable. The younger and healthier you are, the cheaper your life insurance will be.

Life insurance can be negotiated on a term, hence the term “term life insurance,” for ten or twenty years. This means that during your life insurance term your premium and coverage is guaranteed. Life insurance can also be negotiated for the duration of your life. These policies are called “whole life insurance policies,” which means that your premium and coverage is guaranteed for life. Whole life insurance policies can also be used as an investment and savings vehicle.

It is important when arranging a life insurance policy that you work with a life insurance broker who underwrites the policy at the time you obtain it. This will ensure that the life insurance company has validated the state of your health and that they won’t have any reason not to pay out the benefit to your loved ones should something happen to you.

Life insurance arranged through a life insurance broker will result in a contract for life insurance being provided to you once the insurance policy is bound. This means that your premiums and coverage are locked in. Sometimes things in life change and you may want to reduce, increase or cancel insurance coverage. While you can adjust your contract for insurance, your Life insurance provider cannot. As long as you pay your premiums, your insurance is guaranteed no matter how your health or lifestyle changes.

Even if you are in your twenties you are likely able to anticipate if your future includes children and a family, and once this occurs the financial security of your family will become an important concern. As we age, our health changes. Age alone causes life insurance premiums to increase. Changes to health and lifestyle can also cause life insurance premiums to increase, so it is your best bet to get your life insurance provider to commit to a long term life insurance contract with you when it is most affordable.

When you are young, the type of life insurance coverage that you choose will depend on your future financial goals. Do you plan to have a family? Do you plan to amass investments? Is there anyone who may rely on you financially (parents, siblings, etc…)? If you are unsure where your future will lead, term life insurance products tend to be the most basic and least expensive and would be the minimum insurance that you should look at in the absence of a long term vision for the future.

For more information about life insurance while young please contact Gary Mandel at Independent Financial Concepts Group by calling 416-849-1653 or visit www.wecoveryou.ca.

Life Insurance Enables You to Give Your Kids a Head Start

One of the most valuable gifts that you can give your children is a head start in life. Life insurance is an important vehicle that you can leverage to plan for your children’s future. Life insurance increases your children’s financial options when they grow older and life insurance planning should begin when your children are young. The reason that life insurance planning should start when your children are young is because that is when insurance premiums will be their lowest. 

When your children are older and starting out they will appreciate your foresight because they may have expenses that make it challenging for them to find the money to pay for their own life insurance premiums, premiums that will be higher once they’re older. Life insurance is not only used to protect people in the event of death. Whole life insurance policies offer tax benefits and can be used to establish savings that can be put towards education and other financial planning.

Arranging life insurance coverage for children provides guaranteed insurability. Many insurance companies offer options that guarantee an insured’s right to purchase additional insurance without having to submit to insurability testing like medical exams. We don’t know what the future holds so this can provide a massive sense of relief for someone who develops a medical condition as an adult that would make them uninsurable or make life insurance extremely costly. In addition, your children’s career and lifestyle choices can also impact their insurability later in life. Your foresight will mean that if they make choices that would have impacted their insurability that you have coverage in place for them.

As we mentioned whole life insurance policies offer the benefit of carrying a cash value. This means that as you contribute to the life insurance policy you are in fact building up a source of funds that your child can use in the future. This can even be looked upon when the time comes for your child to come up with a down payment on their first home. If your child doesn’t end up using the cash, the investment portion of the life insurance policy will continue to grow, tax advantaged for use later on in their life.

Finally, life insurance provides crucial support to families. In the unlikely event that something did happen to one of your children, their life insurance will prevent you from dealing with financial hardships while you are dealing with your emotional loss. You will be able to plan for not only funeral expenses and outstanding medical bills but will also be able to afford to take time off work beyond your employer’s bereavement leave. Tax free insurance funds will give you the financial flexibility to get through the incredibly tough time that comes with the death of a loved one.

There really is no better time than when your children are young to start planning for their financial future, and working with a life insurance advisor can ensure that you come up with an insurance strategy that deals with today and issues that could present themselves in the future.  

For more information about life insurance planning that enables you to give your children a head start in the future please contact Gary Mandel at 416-849-1653 or visit www.wecoveryou.ca

Mortgage Insurance VS. Life Insurance – What’s the Difference

Buying a home is an exciting time. When you make a decision to buy a home there are so many things to get organized; from moving plans, to mortgage financing, to insurance and more.

When you approach your bank or local mortgage broker to arrange your mortgage financing they will often offer you mortgage insurance. Not to be confused with CMHC mortgage insurance which protects your bank if you default, the insurance we are talking about deals with the insurance that will protect your spouse or loved one if you die.

Mortgage insurance, which is also referred to as mortgage protection is offered by many different companies in many different forms. Mortgage insurance is essentially life insurance; however your benefits will depend on where you obtain the mortgage insurance.

Mortgage insurance offered through a mortgage broker or bank often protects the mortgage lender. The mortgage lender is listed as the beneficiary on the policy, and the policy will provide that in the event you pass away whatever the balance of the mortgage you have with your bank will be paid off in full.

One issue with this is that when you obtain this type of policy the amount of your insurance payment remains the same as long as you have it but your mortgage balance will go down over time. This is one major reason why many folks opt to obtain a life insurance policy to protect their mortgage as opposed to this type of “creditor” mortgage insurance that protects the creditor.

If you obtain a term life insurance policy to protect your loved one in the event that something were to happen to you, the two main things that would differ from the above mentioned mortgage insurance is:

1.       Your loved one would be listed as the beneficiary, not the bank.

2.       The amount of insurance coverage you obtain would remain the same for the term of the policy.

Let’s explore the second benefit to buying life insurance to protect your mortgage a little bit closer. If you were purchasing a home and your mortgage was going to be $250,000 for example, so you purchased $250,000 in term life insurance coverage at a payment of $30 per/mo., in 10 years the coverage would still be $250,000. If something happened to you, your beneficiary would receive a payout in the amount of $250,000.

Had you purchased mortgage insurance from the bank that listed the bank as the beneficiary to pay off the mortgage in the event of death and started with a mortgage balance of $250,000, after 10 years if you passed away your mortgage balance may only be $180,000 and so the bank would receive $180,000.

This is why having a relationship with a good insurance broker is important. An insurance broker that works with all the insurance providers can review the different types of insurance available with you and help you make the best informed decision to protect you and your family.

For more information about mortgage insurance vs. life insurance please call IFCG at 416-849-1653 or visit www.wecoveryou.ca

What is Term Life Insurance and Whole Life Insurance in Ontario and What is the Difference?

Life insurance in Ontario can be complicated but it doesn’t have to be. Life Insurance in Ontario is a contract with the insurance policy holder (you) and the insurer (an insurance company). In the event that the insurance policy holder passes away, the insurance company then has to pay an agreed sum of money to the beneficiary. The beneficiary is designated by the insurance policy holder at the time the insurance policy is arranged.  

This can be dicey where a bank is arranging a mortgage protection policy or life insurance coverage to protect a mortgage in the event of the death of the mortgagee because in most cases the bank will want to name themselves’ as the beneficiary. For this reason you are better off to arrange your own mortgage life insurance coverage through an Insurance Broker if you are taking out a mortgage, because you will have more authority as it relates to naming a beneficiary.                       

Life insurance is typically arranged for 2 reasons; protection or investment. Life insurance contracts tend to fall into two major categories:

1.       Protection policies – designed to protect loved ones in the event of a death.

2.       Investment policies – designed facilitate the growth of capital.  

The two most common types of life insurance are: term life insurance and whole life insurance. What is term life insurance and whole life insurance in Ontario and what are the differences between the two? 

Term life insurance coverage in Ontario carries a specified term. The policy does not accumulate cash value. The term life insurance premium will buy life insurance protection in the event of death and nothing else. Another common type of term life insurance is mortgage life insurance, which if arranged by the mortgage holder (bank) will generally only cover the amount of the mortgage and names the bank as the beneficiary in the event of death. Individuals often purchase term life insurance to “protect” their loved ones in the event of death.

What is whole life insurance and how is it different from term life insurance? Whole life insurance provides lifetime life insurance coverage. When purchasing a whole life insurance policy there is no term. Part of the insurance contract mandates that the life insurance policy holder is entitled to a cash value reserve. This cash value can be accessed at any time through a loan against the life insurance policy and are issued income tax free.

There are many advantages of whole life insurance that include: guaranteed death benefits, guaranteed cash values, fixed, predictable annual premiums and mortality and expense charges that will not reduce the cash value of the policy.  

Term life insurance and whole life insurance both carry their respective benefits but the right life insurance coverage for you will depend on your age, the size of your family (do you have dependants), the life stage of your family and your long term financial goals. Your best bet when trying to figure out what life insurance coverage is best for you is to deal with a local Insurance Broker who works with all of the different insurance companies because they cannot only help you determine which product is the best for your personal circumstances but also who is offering the best deal.

For more information about term life insurance coverage and/or whole life insurance coverage in Ontario, please visit www.wecoveryou.ca or contact Gary Mandel at l Independent Financial Concepts Group by calling 416-849-1653.

Life Insurance Brokers Should Review All Your Life Insurance Options with You

With 2011 drawing to a close, it’s an ideal time to review your insurance strategy with your Life Insurance Broker. The goal should be to ensure that your coverage is keeping pace with changes in your life and that you are aware of all your life insurance options.

People get jobs and lose jobs, the stock market goes up and down, unexpected events, and these are just the basics of life. Look at what has happened in your life recently. Some developments that may warrant a visit to your Life Insurance Broker and changes in what you’re paying for insurance can include: marriage or divorce, the birth of children, children growing into adulthood, a death in the family, a new job, a higher salary, an inheritance, or a change in your wealth or debt levels.

Taking the time to review your life insurance options and what you’re paying for life insurance with your Life Insurance Broker also gives you the opportunity to review where your finances have taken you this year. To see whether your portfolio is still in alignment with your goals and consistent with where your life has taken you. It’s not only a chance to review your investments but also review all aspects of your financial life.

Make sure you have enough life insurance because inadequate insurance can lead to financial difficulties or less support for your family in an emergency. Sufficient life insurance coverage will allow you and your family to weather events that could otherwise lead to financial problems.  Having life insurance is good but having sufficient life insurance coverage is key.

Do you need less life insurance coverage? There are lots of life insurance options and there’s no point in paying for life insurance that you no longer require. Instead, your Life Insurance Broker can suggest you consider diverting the money you’ll save on premiums into savings and investments.

Have you considered more than just life insurance coverage? An annual review of your life insurance coverage with your Life Insurance Broker of what you’re paying for life insurance and what you’re life insurance options are is the best way to assess whether your coverage is adequate. It’s also a great way to ensure that you’re making the best use of all the insurance products you need to guard your financial security and that of your family. While life insurance is central to coverage, your Life Insurance Broker should explore possibly unanticipated needs such as long-term care coverage, critical illness insurance, and disability insurance. Together, you can review your life insurance coverage and other life insurance options to ensure you have the peace of mind that comes from knowing you’re well covered for 2012.

For more information about Life Insurance coverage and the life insurance options that are available you can contact Gary Mandel by calling (416) 849-1653 or by visiting www.wecoveryou.ca

Beneficiary Designation – Should Your Life Insurance Beneficiary be an Individual beneficiary or your Estate?

Your beneficiary designation will determine who benefits from your estate in the event that you pass away. When buying life insurance, most people assume it’s best to name an individual beneficiary — for example, a spouse or a child. However, there are times when it makes more sense to have the proceeds of your policy go to your estate. This means making your beneficiary designation your estate and not an individual.

Here are the ins and outs of leaving your life insurance to your estate. Naming an estate as your beneficiary designation can be a good choice when you want the proceeds to meet non-traditional life insurance needs — meaning, other than to provide for a spouse or children - or needs that go beyond individual beneficiaries.

When your beneficiary designation is your estate, the proceeds of the policy are distributed according to the terms of your will, along with your other property. Your insurance proceeds are brought together with all your other assets.

Consider whether you think you’ll need to change your estate plan as you move through life. Naming your estate as your beneficiary means changes can be made more simply: through your will. You won’t have to worry about changing beneficiaries on insurance policies.

Here are some other reasons you might want to consider naming your estate as your life insurance beneficiary. You can use this strategy to:

Leave money to charities. You can specify in your will how much of your estate goes to each charity and change your instructions at any time, without naming charities as life insurance beneficiaries. Set up a trust. Leaving cash to an estate can sometimes make it easier, as the will can dictate the setup of trusts for children. This can be useful when you want to specify how money left to children is to be spent or to make provisions for children to receive funds when they reach a certain age.

Pay expenses. You can use life insurance proceeds to pay costs associated with your estate. These can include final expenses, debts and tax liabilities. There are a couple of caveats you should be aware of when considering naming your estate as the beneficiary of your insurance policy. They include the fact that policy proceeds (along with the rest of your estate) may be reduced by the cost of probate — the legal process that validates the authenticity of a will. Probate can also delay distribution of assets and your estate may be subject to legal claims from creditors.

However, under the right circumstances, the advantages of naming an estate can outweigh these considerations. If you name your estate as a beneficiary, it’s important to make sure your will is always up to date.  Together, we can explore when and where insurance proceeds will be needed and determine whether naming your estate as beneficiary makes sense for you. For more information about beneficiary designations and whether to name an individual as your life insurance beneficiary or your estate contact Gary Mandel by calling (416) 849-1653 or by visiting www.wecoveryou.ca

Life Insurance Coverage in Ontario Should Be Reviewed Annually as Life Insurance Needs Can Change

Like all aspects of your finances, insurance needs can change. Families mature, and new life insurance products come available that offer different incentives. It is always a good idea to review your life insurance coverage from time to time to ensure it offers the best possible protection.

Your evolving insurance needs depend on your current and changing life situation and your financial goals. Insurance changes should be based on an exploration of the key aspects of your life and adjusting your life insurance coverage in Ontario to better reflect your current insurance needs.

Here are three to consider:
1. Life events – Some of the key developments that can call for insurance changes include marriage, divorce, birth of children, change in income or a sudden change to your wealth. For example, perhaps your insurance needs change because your family is larger and you want to leave more for your heirs. Alternatively, perhaps you would be better suited to consider insurance products that offer a tax benefit as one example because you’ve built up your wealth, paid off the mortgage and your kids have finished their post-secondary education. A review might even reveal how we can save money on life insurance coverage. For example, if your health picture has changed for the better – perhaps you’ve lost a great deal of weight or your high cholesterol has dropped – we might be able to take advantage of the breaks on premiums some insurers offer under those circumstances and make the necessary insurance changes.

2. Beneficiaries – One thing we should always review is your beneficiaries. These are common insurance changes since they’re the ones who receive the proceeds of your policy, it’s important that we always make sure they’re who you want them be and that you’re taking care of them in the best way possible. You want to make beneficiary changes as you go through life to accommodate new children or grandchildren. When naming a person as your beneficiary, instead of your estate, the proceeds will be passed on directly to your named beneficiary. This will be private, not public record, and they will bypass probate fees. Your insurance needs depend on your current and changing situation and your financial goals.

3. Your financial situation – We should explore your life insurance coverage in Ontario in relation to your overall financial picture. Remember insurance is just one part of a long term financial strategy, which means the coverage that’s right for you depends on other aspects of your financial life. If your life insurance coverage policy includes an investment component, we can explore how it fits in with your overall plan. We’ll examine its investment performance and consider the best ways to use the cash value.

Discuss your life insurance coverage with your Ontario Insurance Advisor at least once a year. Then you’ll have peace of mind that comes from knowing that you’re well covered. For more information how you can review your Life Insurance Coverage in Ontario contact Gary Mandel at IFCG by calling (416) 849-1653 or by visiting www.wecoveryou.ca

Life Insurance “Premiums That Do Not Increase” are Available for Other Ontario Insurance Products Too

Insurance companies determine the cost of your premiums based on the risk that you represent to them.

That’s why, generally, life insurance, disability insurance, critical illness insurance and most other personal insurance products will increase the premium they offer you depending on:

- Your age
- Health
- Habits (Smoking etc.)
- Medical History
- Family History, etc.

Another measure that will factor into how your insurance premium is calculated is the term. With life insurance, disability insurance and critical illness in Ontario you can purchase a 10 year term policy, 20 year term policy or a policy that lasts for life. This is referred to as your insurance policy term.

During your insurance policy term, your insurance company cannot revoke your insurance or increase your insurance premium. Even in the event that you have a health problem, move to another country, change income sources, start a bad habit – as long as you make your insurance payments, your insurance company must honour your insurance policy terms throughout the insurance term.

Anytime you are looking at any insurance product whether it is a 10 year term insurance policy, 20 year term insurance policy or a policy that lasts for life, the shortest term policy is almost always the cheapest insurance option. For example, if you were looking for a term life insurance policy, a 10 year term life insurance policy would be the cheapest option.

As mentioned you can obtain life insurance, disability insurance and critical illness insurance that guarantees the insurance premium will never increase for the life of the contract. These policies are often more expensive than the term insurance option but can carry perks that make the additional cost worthwhile.

Critical illness insurance is a great example of an insurance product where you can get an insurance premium that will be guaranteed for life, and carries an extra bonus. After 15 years, if you don’t make an insurance claim you can receive 100% of your insurance premiums paid back to you. At that time, if you don’t want to cash out, you can continue making your monthly payments at your guaranteed premium and rate of payment. As you get older and become at higher risk of having a critical illness, you will enjoy a low critical illness insurance payment and will have excellent critical illness protection. You can choose to cash out all your premiums at any time after 15 years.

Whole life insurance also guarantees your insurance premiums for life and carries major income tax incentives.

A qualified Life Insurance Agent will be able to assess your personal circumstances and recommend the right product for you, ensuring the lowest rates. For more information about insurance “premiums that do not increase” and for all Ontario insurance products please visit www.wecoveryou.ca or call 416-849-1653.